The integration of artificial intelligence (AI) into customer feedback systems has emerged as a transformative approach for businesses seeking to enhance their strategies and maintain a competitive edge. This review presents a data-driven framework that leverages AI to analyze, interpret, and act upon customer feedback, providing actionable insights for business decision-making. AI techniques such as natural language processing (NLP), machine learning (ML), and sentiment analysis allow companies to automate the feedback collection process and analyze vast amounts of data from diverse sources, including surveys, reviews, social media, and customer support interactions. The proposed framework facilitates real-time feedback analysis, enabling businesses to identify trends, customer preferences, and potential pain points more efficiently. By integrating AI with existing customer relationship management (CRM) systems, businesses can automate the categorization and prioritization of feedback, allowing for timely responses and more effective problem-solving. Furthermore, predictive analytics tools within the framework can forecast customer needs, allowing businesses to tailor products and services to meet evolving expectations. This framework also supports continuous improvement by enabling businesses to track the impact of changes implemented based on customer feedback. Additionally, AI’s ability to personalize the customer experience by recognizing patterns and individual preferences plays a crucial role in increasing customer satisfaction and loyalty. The data-driven insights generated through AI integration can guide businesses in refining their marketing, product development, and customer service strategies, leading to improved operational efficiency and better alignment with customer expectations. In conclusion, the integration of AI into customer feedback mechanisms represents a significant advancement for data-driven business strategy development. This framework not only enhances feedback accuracy and speed but also empowers businesses to deliver more personalized and customer-centric solutions.